LeapRate Exclusive… Further to our article yesterday on the 2014 financial results of XTB Limited, XTB management have asked us to clarify the meaning of those results in the context of the overall XTB Group.
XTB Limited is the UK-based, FCA-regulated subsidiary of the XTB Group (formally, X-Trade Brokers Com Maklerski S.A. Capital Group, based in Poland). And the financial results of XTB Limited represent only those of the UK entity, not of the overall Group.
While as we reported XTB Limited saw revenues of $1.5 million in 2014 and had a $1.1 million net loss, the story at the overall XTB Group was markedly different – Revenues of $55 million, and Net Profit after taxes of $21 million (see financials for XTB Group below).
An XTB spokesperson had the following to say:
We believe the article is misleading as it is only referring to one small business unit within the XTB Group as a whole.
Whilst the UK entity made a narrower loss year on year of £687k, the group as a whole made a €17 million net profit. And so as you can see, the article paints an inaccurate picture of the success of XTB Group over the last year.
To give you some background, XTB made a strategic decision over a year ago to put more resources into its UK entity and grow its FCA regulated offering. Naturally as we invest in our UK entity, its costs will increase but we have high hopes for our UK business and have made good progress over the course of the year. For example, our monthly trading volumes and number of active customers in the UK has tripled in the last six months.
We strongly ask that this article becomes balanced. In its current tone, it is not a fair reflection of the performance of XTB.
Below is the snapshot from the Group’s report. [Note: results are shown in Polish Zloty = approximately 0.27 USD].